Binance CEO Changpeng Zhao Finds Relief In Bitcoin Volatility Coming Back To Crypto Market
Changpeng Zhao Relieved To See An Increased Bitcoin Volatility
Changpeng Zhao, the CEO of Binance seems to be happy about increased volatility in Bitcoin (BTC) and the crypto market in general. Binance is the largest digital asset exchange in the world in terms of trading volume and it is also one of the most popular.
Zhao explained in a recent tweet that the market is going in the right direction. It is important to understand that during 2018, Bitcoin experienced a volatility reduction that reached its lowest point in mid-November before the contingent hard fork experienced Bitcoin Cash (BCH).
Changpeng Zhao comments come in a moment in which Bitcoin was able to be traded above $4,000 without falling under that support level. Not only Bitcoin experienced an important increase, but many other digital currencies performed very well in the last days.
Cryptocurrency exchanges such as Bitmain tend to increase their revenue when volatility increases. During 2018, the market experienced a decrease in volatility, something that harmed the revenue of the most important exchanges in the market. When there is lower volatility, trades tend to be less profitable and markets less attractive to perform day trading activities.
Since November 15, when Bitcoin Cash experienced a hard fork, the market started to experience increased volatility. At the same time, on January 7, Bitfinex and Ethfinex were offline for a few hours since they had to perform an upgrade on their services.
Due to this situation, Binance seemed ready to receive new investors and traders. However, the market did not experience a lot of volatility when these exchanges were down. Both of them did not represent an important trading volume of Bitcoin and other digital assets.
Binance is currently the largest digital asset exchange handling $614 million in the last 24 hours. Bitcoin and Ethereum (ETH) seem to be the most traded virtual currencies in this exchange.